Re-engineering materials management: a case study on an Indian refinery

Dey, Prasanta K. Re-engineering materials management: a case study on an Indian refinery. Business Process Management Journal, 7 (5), pp. 394-408.


Materials management function is always a major concern to the management of any industrial organisation as high inventory and an inefficient procurement process affect the profitability to a great extent. Problems multiply due to a very current business environment in India. Hence, existing materials planning and procurement processes and inventory management systems require a re-look with respect to a changing business environment. This study shows a radical improvement in materials management function of an Indian petroleum refinery through business process re-engineering (BPR) by analysing current processes, identifying key issues, deriving paradigm shifts and developing re-engineered processes through customer value analysis. BPR has been carried out on existing processes of “materials planning and procurement” and “warehousing and surplus disposal”. The re-engineered processes for materials management function trigger a few improvement projects that were identified by the group of executives who took part in the re-engineering exercise. Those projects were implemented in an integrated framework with the application of the state of art information technology tools.

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Divisions: Aston Business School > Operations & information management research group
Aston Business School > Operations & information management
Uncontrolled Keywords: materials management function,industrial organisation,high inventory,procurement process,profitability,business environment,India,Indian petroleum refinery,business process re-engineering,BPR,customer value analysis,materials planning and procurement,warehousing and surplus disposal


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